Friday, January 22, 2016

Motion for Preliminary Approval of Class Action Settlement

As many are aware on August 4, 2013, (“Petition Date”), the Defendants and certain of their affiliates (collectively, the “Debtors”) filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (Case No. 13-11952-KJC).  Pursuant to the dictates of 11 U.S.C. § 362(a), upon Petition Date, the Class Action was stayed.  Claim” refers to Claim Numbers 919, 920, and 1163 filed by the Plaintiffs, individually and/or in their capacity as Class Representatives, in the Chapter 11 Cases in connection with the Action.

In October 2013, the Class Representatives, through their counsel, led by Joseph Antonelli Esq. and Richard E. Quintilone II Esq. timely filed a proof of claim in the Debtors’ chapter 11 cases on behalf of the Class (the “Class Claim”) based upon damages to the Class for, inter alia, the Debtors’ violation of the statutes and the causes of action set forth in the Second Amended Complaint.  The Class Representatives also filed individual proof of claim based upon the same causes of action.  Shulman, Hodges & Bastian, LLP serve as bankruptcy counsel for the Class Representatives.  The Rosner Law Group LLC is local bankruptcy counsel in the District of Delaware for the Class Representatives.  

On October 15, 2013, the Class Bankruptcy counsel in the District of Delaware for the Class Representatives moved under Bankruptcy Rule 7023, in accordance with Bankruptcy Rule 9014, to certify the Class for purposes of asserting and seeking allowance of the Class Claim.  This motion was granted on December 17, 2013 by Hon. Kevin T. Carey, United States Bankruptcy Judge. 

The Plaintiffs seek entry of the class certification order and to obtain preliminary approval of a non-reversionary settlement in the gross amount of $1,700,000 on behalf of approximately 1,699 current and former hourly non-exempt employees, who were employed by Bowers Ambulance, Inc. (“Bowers”), Pacific Ambulance, Inc. (“Pacific”) or its predecessors (collectively "Defendants" or “Bowers”) and who worked in California at any time during the Class Period of February 3, 2005 to August 4, 2013.  

The parties have completed the negotiations on the settlement, the terms of which are set forth in the Joint Stipulation and Agreement of Compromise and Settlement (the “Settlement Agreement”) which can be viewed at the Orange County Superior Court or online, which has been signed by all parties to the litigation. Additionally, two consents that impact the viability of the Settlement Agreement have now been obtained. 

The Plaintiffs, through their counsel, are in the process of drafting the preliminary approval papers to file with this Court during the week of February 15, 2016.

If there are any questions about the case, any current California Labor Code claims you may have, or the upcoming motion for preliminary approval of the Class Action Settlement, please feel free to contact class counsel at the following:

Richard E. Quintilone II, Esq.
22974 El Toro Road, Suite 100
Lake Forest, CA 92630-4961
Tel:   949.458.9675
Fax:  949.458.9679

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